From this point on, you will enter the realm of costs for services…money you will spend in order to learn as much about the home as possible. These are fees that you will not get back if you do not buy the home:
Loan Application, Credit Report, Appraisal Fee
- These dollar amounts your lender will have given you when you first discussed your pre-qualification with them. If you decide not to purchase this home, but you intend to continue on and look for another home, you may not have to pay for a new loan application or credit report. You will have to pay for the appraisal of the home you decide not to buy, if the appraisal has been completed before you decide to leave the contract.
General Home Inspection
- This inspection goes over all of the working systems of the home. If your inspector sees problems with something beyond his scope, he/she will then recommend you get more specific inspections by people licensed for that particular system. This could be the HVAC system, the crawl space, the plumbing, the electrical, the structure of the home and so on. Assuming there is nothing that requires further specific inspections in one of those areas, expect to spend a minimum of $400 and up for a general home inspection.
- This inspection is to determine if high levels of radon are in your home and might need to be dealt with. High levels of radon are known to increase the risk of lung cancer. Expect to spend a minimum of $150 and up for a radon inspection.
Next time: Due Diligence Cost Estimates, Part III